European Green Deal: January 2025 Updates and Industrial Impacts

We are pleased to continue our monthly column dedicated to the European Green Deal and its implications for the electric motor industry. In this second edition, we will analyze the key developments that emerged in January 2025, focusing on political and industrial advancements relevant to our work in the production of stators and rotors.

January 2025 Updates

1. Five-Year Plan for European Industrial Competitiveness

On January 29, 2025, the European Commission unveiled an ambitious five-year plan aimed at strengthening the competitiveness of European industries.

This plan includes measures to:

• Streamline business regulations
• Accelerate investments
• Support the decarbonization of energy-intensive industries

One of the key initiatives is the “Clean Industrial Deal”, which seeks to:

• Facilitate permits for clean industrial projects
• Reduce energy costs
• Simplify sustainability reporting requirements

For companies in the electric motor sector, this framework presents opportunities for increased funding, regulatory simplifications, and enhanced support for low-carbon technologies.

2. Relaunch of the European Green Deal

Throughout the month, European Commission President Ursula von der Leyen reaffirmed the EU’s commitment to the Green Deal objectives.

The plan combines:

• Stricter environmental regulations
• Economic incentives

The core objective remains to significantly cut greenhouse gas emissions by 2030.

A substantial portion of the package is dedicated to:

• Investments in renewable energy (wind, solar)
• Funding for R&D in innovative decarbonization technologies

This renewed focus on sustainability and clean energy aligns with the electric motor industry’s push for higher efficiency solutions.

3. Public Consultation on Projects of Common Interest

On January 31, 2025, the European Commission launched a public consultation on projects eligible for Projects of Common Interest (PCI) or Projects of Mutual Interest (PMI) status within the energy infrastructure sector.

This initiative aims to:

• Identify and promote strategic projects
• Enhance European energy market integration
• Strengthen supply security

For the electric motor industry, this could translate into new business opportunities in smart grids, industrial electrification, and energy-efficient transportation solutions.

Barriers to Decarbonization

Despite progress, January 2025 has also brought significant setbacks that could slow down global decarbonization efforts:

•  U.S. Withdrawal from the Paris Agreement

On January 20, 2025, President Donald Trump officially withdrew the United States from the Paris Climate Agreement. This decision represents a major setback for global climate efforts, as the U.S. is one of the world’s largest greenhouse gas emitters.

•  Delays in Climate Action Plans

By February 10, 2025, nearly 200 countries were expected to submit updated climate plans under the Paris Agreement. However, several major emitters, including: the European Union, Australia, South Africa, India Failed to meet the deadline, raising concerns about the global ability to meet climate targets.

Implications for Our Company

These developments highlight the complex landscape for companies involved in energy transition initiatives. On the positive side, EU policies offer new opportunities for innovation and sustainable growth. On the challenging side, international setbacks underscore the need for strategic resilience.

Our company remains committed to:

• Supporting customers in designing next-generation electric motors
• Enhancing efficiency and minimizing energy losses
• Developing solutions that align with decarbonization goals